SURESH HIRACHAND KATRELA,OSMANABAD V. ITO WARD 1 , LATUR

ITA 129/PUN/2025

AI Insights

The case involves an appeal by Suresh Hirachand Katrela against the order of the Ld. CIT(A) NFAC, which was dated 26.11.2024 and arose from an assessment order passed under sections 147 read with section 144 of the Income Tax Act, 1961, dated 24.12.2018. The primary contention in the appeal was the ex-parte nature of the CIT(A)'s decision and the validity of the assessment order which included an addition of Rs. 22,75,200 under section 69A of the Act. The assessee argued that the CIT(A) erred in not granting sufficient opportunities of hearing and dismissed the appeal ex-parte. The Tribunal noted the absence of a speaking order from the CIT(A) dealing with the merits of the case and decided to remit the matter back for a detailed examination and a reasoned decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 469581 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BASAVARAJ
• Keywords: Business income; Principle of natural justice
• Section: 148; 144; 250; 69A

Judgement Text

"आयकर अपीलीय अधिकरण \"एस एम सी\" न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL \"SMC\" BENCH, PUNE BEFORE Dr. MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.129/PUN/2025 धििाारण वषा / Assessment Year: 2011-2012 Suresh Hirachand Katrela, Mandia Peth, Main Road Paranda, Osmanabad- 413502 Maharashtra PAN-AKVPK8518N Vs ITO, Ward-1, Latur Appellant Respondent Assessee by : None Revenue by : Shri Basavaraj Hiremath, Additional CIT Date of hearing : 25.03.2025 Date of pronouncement : .03.2025 आदेश/ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : This appeal at the instance of the assessee is directed against the order of Ld. CIT(A) NFAC dated 26.11.2024 u/s 250 of the Income-tax Act, 1961 which is arising out of Assessment Order passed u/s.147 r.w.s. 144 of the Act dated 24.12.2018. 2. When the case was called for none appeared on behalf of the assessee. On the last day of hearing also fixed on 27.02.2025, assessee failed to appear. We therefore proceed to adjudicate the appeal. 3. Assessee has raised following grounds of appeal:- 1. On the facts and in the circumstances of the case and in law the Id. CIT(A) erred in not granting sufficient opportunities of hearing and dismissing the appeal exparte 2. On the facts and in the circumstances of the case and in law the appellant prays before the Hon'ble Rench to kindly grant an opportunity to represent the matter before the Id CIT(A). 2 ITA No.129/PUN/2025 3. On the facts and in the circumstances of the case and in law the Assessment Order is invalid and bad in law 4. On the facts and in the circumstances of the case and in law the Assessing Officer erred in assessing the total income of the appellant at Rs. 22,75,200/- 5. On the facts and in the circumstances of the case and in law the Assessing Officer erred in not taking cognizance of the return of income filed by the appellant in response to notice u/s 148 of the Income Tax Act, 1961 6. On the facts and in the circumstances of the case and without prejudice to the above grounds the Assessment Order erred in making addition in respect of cash deposits without taking cognizance of the fact that the cash deposits are duty explained out of the business receipts of the appellant 7. On the facts and in the circumstances of the case and in law and without prejudice to the above grounds of appeal the Assessing Officer erred in not taking considering the fact that the cash deposits pertain to the business of the appellant and addition if any could be made only in respect of net margin of the appellant 8. The above grounds of appeal may kindly be allowed to be altered, amended, modified, deleted etc in the interest of natural justice. 4. Before us Ld. DR stated that the impugned order is ex- parte. 5. We have heard Ld. DR and perused the record placed before us. We notice that assessee is an individual and best judgement assessment u/s 144 was framed on 24.12.2018 for A.Y. 2011-12. Addition of Rs. 22,75,200/- was made u/s 69A of the Act. In the appellate proceedings assessee failed to appear on all the four days of hearing. However Ld. CIT(A) has not passed a speaking order dealing with the merits of the case. 5. We therefore in the interest of justice and being fair to both the parties remit the issue raised on merit to the file of Ld. CIT(A) for passing a speaking order as contemplated u/s 250(6) of the Act and decide in accordance with law after providing reasonable opportunity of hearing to assessee. Assessee is also directed to remain vigilant and not to take unnecessary adjournment. Effective grounds of appeal raised by the assessee are allowed for statistical purposes. 3 ITA No.129/PUN/2025 6. In the result appeal of the assessee is allowed for statistical purposes. Order pronounced on this day of March, 2025. (SS VISWANETHRA RAVI) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे/ Pune; दििांक / Dated: March, 2025. Neeta आिेश की प्रधिधलधप अग्रेधषि / Copy of the Order forwarded to: 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT concerned. 4. धवभागीय प्रधिधिधि, आयकर अपीलीय अधिकरण, \"SMC\" बेंच, पुणे / DR, ITAT, \"SMC\" Bench, Pune. 5. गार्ा फाइल / Guard File. आिेशािुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण, पुणे / ITAT, Pune "